What are 'Reserved Accounts' in the context of a Dryject franchise agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) You shall have the right to operate a DryJect Franchised Business, and to use Our Licensed Rights in Franchisee's Designated Territory. We will not grant to others (nor reserve unto ourselves except as specified in this Agreement) the right to operate a DryJect business within Your Designated Territory. However, We reserve the right to establish policies pertaining to the sale of products and services at discounted rates to customers operating multiple facilities, some of which may be located within Your Designated Territory ("Reserved Accounts"). In the event that You do not agree to provide a Reserved Account with the contracted goods or services for a facility operated within Your Designated Territory at the discounted rate, or You are unable to provide the required goods or services within Your Designated Territory, We, any of Our affiliates or another of Our franchisees may supply the goods or services, and You shall not be entitled to receive any fee or other compensation associated with the transaction.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, 'Reserved Accounts' refer to customers who operate multiple facilities, some of which may be located within a franchisee's designated territory. Dryject reserves the right to establish policies pertaining to the sale of products and services at discounted rates to these customers. This means that Dryject may offer these large, multi-facility customers special pricing that individual franchisees might not be able to match.
If a Dryject franchisee does not agree to provide a Reserved Account with the contracted goods or services at the discounted rate for a facility within their territory, or if they are unable to provide the required goods or services, Dryject, its affiliates, or another franchisee can step in to supply those goods or services. In such cases, the original franchisee will not receive any fees or compensation from that transaction. This clause ensures that Dryject can maintain relationships with large, important clients even if a local franchisee is unwilling or unable to meet their needs at the agreed-upon discounted rate.
This arrangement has implications for a prospective Dryject franchisee. While franchisees are granted an exclusive territory, this exclusivity is subject to the exception of Reserved Accounts. Franchisees need to be aware that Dryject can directly service certain large clients within their territory, potentially impacting their revenue. It is important for a prospective franchisee to understand the potential impact of Reserved Accounts in their specific territory and to discuss this with Dryject during their due diligence process.